Assume that a parent owns 75% of a subsidiary that has 6% preferred stock outstanding with a reported par value of $900,000. Aside from the preferred dividends, no other dividends are paid (i.e., no dividends are paid to the common shareholders). Assume that the Subsidiary reports net income of $250,000. During the year, the Parent company reported $400,000 of (pre-consolidation) income from its own operations (i.e., prior to any equity method adjustments by the Parent company).

Assume that the parent owns 30% of the preferred stock and the subsidiary's shareholder's equity at the beginning of the year was as follows:

Retained Earnings$4,500,000

Common Stock$250,000

APIC$17,000,000

Preferred Stock$900,000

What is the [E] consolidation entry at the end of the year?